Straight into it.
What are the pros and cons of investing in gold?
I will list the key points in which you need to understand to invest and trade gold.
The pros of investing and trading gold:
- Gold is a great hedge against a down market, it is a safe and secure asset- which has proved to always hold a strong long term value.
- Gold remains to hold strong value, even when there is a drop in the value of paper currency.
- Gold has always proved to rise in value over the years, the past suggests that the future of gold is strong.
- Gold is a highly liquid asset, it is easy to buy and sell- it allows flexibility in your investing and trading.
- It is easy and simple to invest and trade gold, you do not need any experience of special knowledge.
- Gold can help offer diversification in your investment portfolio.
- Gold offers a security of value, short term and long term.
The cons of trading and investing in gold:
- It can be costly to store gold physically.
- It does not produce passive income like some of the other investment options do.
- Gold has small, to relatively low capital gains.
- Gold has volatility short term, the price fluctuations may cause some investors dissatisfaction with the asset.
- Gold is vulnerable to theft.
- The asset does not earn as greater returns as other investments do.
- Gold does not offer above average returns long term.
Thank you for reading,
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